|
Report Date : |
13.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
LUK FOOK DIAMOND CO. LTD. |
|
|
|
|
Registered Office : |
3/F., Luk Fook Jewellery Centre, |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
02.11.2005 |
|
|
|
|
Com. Reg. No.: |
36178970 |
|
|
|
|
Legal Form : |
Private Limited Company. |
|
|
|
|
Line of Business : |
Diamond and Jewellery Trader. All kinds of diamonds, jewellery, pearls, etc. |
|
|
|
|
No. of Employees : |
30. (Including associates) |
RATING & COMMENTS
|
MIRAs Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LUK FOOK
DIAMOND CO. LTD.
ADDRESS: 3/F., Luk Fook Jewellery
Centre,
PHONE: 2308 1218
FAX: 2374 1696
E-MAIL: group@lukfook.com.hk
Managing Director: Mr. Au Kwok
Kau
Incorporated on: 2nd
November, 2005.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$6,120,000.00
Business Category: Diamond and Jewellery Trader.
Luk Fook Group Revenue: HK$8,091,121,000 (Year ended 31-03-2011)
Employees:
30. (Including associates)
Main Dealing Banker: Hang Seng Bank Ltd.,
Banking Relation: Good.
Registered Head Office:-
3/F., Luk Fook Jewellery Centre,
Holding Companies:-
Luk Fook
Wing Hang Diamond Co. Ltd.,
Associated/Affiliated Companies:-
China Gems Laboratory Ltd.,
Fancy Trend Investment Ltd.,
Guang Xi Fu Chuan Wing Hang Co. Ltd.,
Guangzhou Ziao Wing Diamond Co. Ltd.,
Ice Collection (International) Ltd., Hong Kong.
Jewellworld.com Ltd.,
Jewellworld.com Ltd.,
Luk Fook Bullions Dealers Ltd.,
Luk Fook Corporate Gift (International) Ltd., Hong Kong.
Luk Fook Diamond Co. Ltd.,
Luk Fook Finance Co. Ltd.,
Luk Fook Holdings Co. Ltd.,
Luk Fook Jewellery & Goldsmith (
Luk Fook Jewellery & Goldsmith (HK) Co. Ltd.,
Luk Fook Jewellery & Goldsmith (
Luk Fook Jewellery & Goldsmith (
Luk Fook Jewellery & Goldsmith (USA-NY) Co. Ltd.,
Luk Fook Jewellery (
Luk Fook Jewellery (Shenzhen) Co. Ltd.,
Max Forum Development Ltd.,
Maxigood (
Maxigood Diamond (
Wing Hang Diamond (
Wing Hang Diamond Cutting Works Ltd.,
Wing Hang Diamond Cutting
Wing Hang Jewellery Co. Ltd.,
Wing Ziao Diamond Cutting
etc.
36178970
1005062
Managing Director: Mr. Au Kwok
Kau
Nominal Share Capital: HK$10,000,000.00
(Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$6,120,000.00
(As per registry dated 02-11-2011)
|
Name |
|
No. of shares |
|
Luk Fook |
|
3,060,000 |
|
Wing Hang Diamond Co. Ltd. |
|
3,060,000 |
|
|
|
|
|
|
Total: |
6,120,000 ======= |
(As per registry dated 02-11-2011)
|
Name (Nationality) |
Address |
|
PONG Hang King, Alfred |
Flat B, 15/F., |
|
WONG Chuen Chung, Argo |
Flat D, 6/F., Fu Bon Court, Fortress Gardens, 32 Fortress Hill Road,
North Point, Hong Kong. |
|
WONG Wai Sheung |
Flats C & D, 37/F., Tower 17, Laguna Verde, |
|
AU Kwok Kau |
Flat F, 55/F., Block 5, Metro Town, 8 King Ling Road, Tseung Kwan O,
New Territories, Hong Kong. |
(As per registry dated 02-11-2011)
|
Name |
Address |
|
|
Luk Fook |
Luk Fook Jewellery Centre, |
- |
The subject was incorporated on 2nd November, 2005 as a private limited
liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Diamond
and Jewellery Trader.
Lines: All
kinds of diamonds, jewellery, pearls, etc.
Employees: 30. (Including associates)
Commodities Imported: Imported from Africa,
Markets:
Luk Fook Group Revenue:-
HK$2,903,742,000 (Year ended 31-03-2007)
HK$3,455,471,000 (Year ended 31-03-2008)
HK$3,959,227,000 (Year ended 31-03-2009)
HK$5,386,432,000 (Year ended 31-03-2010)
HK$8,091,121,000 (Year ended 31-03-2011)
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: Various terms.
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$6,120,000.00
Luk Fook Group Profit Attributable to
Shareholders:-
HK$198,059,000 (Year ended 31-03-2007)
HK$313,989,000 (Year ended 31-03-2008)
HK$275,160,000 (Year ended 31-03-2009)
HK$531,484,000 (Year ended 31-03-2010)
HK$866,216,000 (Year ended 31-03-2011)
Profit or Loss: Business is profitable.
Condition: Keeping
in an active and satisfactory condition.
Facilities: Making
very active use of general banking facilities.
Payment:
So far so good.
Commercial Morality: Satisfactory.
Banker:
Hang Seng
Bank Ltd.,
Standing:
Having issued 6,120,000 ordinary shares of HK$1.00 each, Luk Fook
Diamond Co. Ltd. is equally owned by Luk Fook China (B.V.I.) Ltd. and Wing Hang
Diamond Co. Ltd., both are Hong Kong-registered firms.
The former is a member of the Luk Fook Group [Luk Fook/Group].
Luk Fook is one of the leading jewellery retailers in
The Group principally is engaged in sourcing, designing, wholesaling and
retailing of a variety of platinum and gold jewelleries, gold ornaments, gem‑set
jewelleries, natural jadeites, gemstones and other accessory items, with a
total of over 890 retail outlets across the PRC, Hong Kong, Macau, Singapore,
the United States and Canada.
Since the establishment of the first retail outlet in the PRC in 1994,
the total number of outlets located in the PRC has rapidly grown to over 840 by
now. While the Group has installed many
retail outlets in the first and second tier cities including
In order to further enhance cost effectiveness and production
efficiency, the Group has established its own jewellery processing plant. In 2003, the Group set up a large-scale jewellery
processing plant in Panyu,
Wing Hang Diamond Co. Ltd. [Wing Hang] was incorporated in November 1999
as a wholly-owned subsidiary of Wing Hang Holdings Ltd. which is a
BVI-registered firm.
Founded in 1975, Wing Hang started as a small diamond trading company
having just eight employees. With
prudent management, Wing Hang has established a rather strong foothold in the
global diamond wholesaling industry offering a wide range of products in order
to meet the demands of its customers.
Headquartered in
Wing Hang also has got some contracted factories engaged in diamonds polishing
and cutting which includes the factories of Luk Fook.
For the year ended 31st March 2011, the Luk Fooks total revenue was
approximately HK$8,091,121,000, which represented a 50% growth as compared to
HK$5,386,432,000 in the previous year.
Profit attributable to shareholders grew by 63% to approximately
HK$866,216,000 from HK$531,484,000 of last year. Operating profit margin improved from 11.8%
in last year to 12.7% in this year.
The revenue of the Group for the six months ended 30th September 2011
grew 68.8% from HK$3,264,477,000 previous year to approximately
HK$5,511,437,000. Profit attributable to
shareholders was approximately HK$719,630,000, which represented a 125.0%
growth as compared to HK$319,770,000 in the previous year.
During the period of the six months ended 30th September 2011, the Group
opened 81 new retail outlets (including 68 licensee shops and 13 self-operated
shops) in the PRC. As at 30th September
2011, the Group had a total of 780 retail outlets (including licensee shops)
globally with 738 in the PRC, 31 in Hong Kong, 6 in Macau, 1 in
For the six months ended 30th September 2011, the Group had 3,560
employees.
The subject is fully supported by Wing Hang and Luk Fook.
On the whole, consider the subject good for normal business engagements.
DIAMOND INDUSTRY
-
From time immemorial,
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on many
fronts including higher standard of corporate governance, long-term performance
focused strategies, modern management and technology.
-
The diamond jewellery industry in
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under
DIAMOND
SAGA DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in
-
Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.05 |
|
|
1 |
Rs.86.69 |
|
Euro |
1 |
Rs.69.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SCs credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.